House debates

Tuesday, 16 September 2008

Questions without Notice

Wheat Exports

3:13 pm

Photo of Nick ChampionNick Champion (Wakefield, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Agriculture, Fisheries and Forestry. Will the minister advise the House on progress on the wheat marketing for the current harvest?

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

I thank the member for Wakefield for the question. In the reform of wheat export marketing, the government delivered on a key election commitment and on a key economic reform. For the first time in more than 60 years, wheat growers around Australia now have a choice about who exports their wheat. Information sessions commenced on 1 August around the country. More than 51 sessions have been held during August and September and attendance at each of them has been impressive. Wheat Exports Australia have commenced the process of accrediting companies that satisfy the legislation and are therefore given accreditation to export wheat in bulk. So far, 13 companies have been accredited, including AWB, the former single-desk holder. That means those wheat growers who want to continue to sell to AWB will be allowed to do so and those wheat buyers from overseas who want to continue to deal with AWB will be able to do so but those who wish to engage in choice beyond that now have an option, for the first time.

I note in an article I saw a couple of weeks ago in the Land that a small business by the name of OzEpulse is among the companies given permission for the first time to be an exporter of wheat. For some years they have believed they could provide growers with a significantly higher price than growers were receiving. In 1999, for the first time under a previous company name but the same directors, they put in their application. Back then, of course, when a small business put in an application, guess who got to decide whether or not they could be a competitor with AWB. It was AWB. Not surprisingly, in 1999 and each subsequent year their applications were rejected. In 2007 they were faced with a new scheme when the then Minister for Agriculture, Fisheries and Forestry, a member of the National Party under the previous government, held the veto. What happened when they applied to export wheat in bulk then? The veto was still exercised. I am pleased to say that this company is among the 13 companies which have been given accreditation to export wheat in bulk. The Managing Director of OzEpulse is quoted in the article in the Land:

“We had applications sitting on the minister’s desk for six or seven months,” he said.

“We found out AWB was apparently making submissions directly to the minister that we were not privy to.

“Almost every application we made was blocked, even though the price was well in excess of what AWB was offering.”

For a small business wanting a fair go, they were neglected for a decade. For farmers wanting a better price for their wheat, they were neglected for a decade. A much needed economic reform is finally operating and delivering for the future of small business and farmers.

Photo of Kevin RuddKevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | | Hansard source

Mr Speaker, I ask that further questions be placed on the Notice Paper.